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Cloud Computing: Businesses Increasingly are Shifting to Public and Hybrid Cloud Usage

By Dick Weisinger

Cloud computing is taking up a larger percentage of IT budgets for businesses, and the use of cloud computing is becoming pervasive across all aspects of businesses.

A survey by Kable Global ICT Intelligence found that among large enterprises, 38 percent of IT budget is being spent on cloud computing, 20 percent on SaaS (Software as a Service), and another 18 percent on PaaS (Platform as a Service).  The Kable report also found that 41 percent of enterprises are using private cloud, compared to 28 percent using hybrid, and 31 percent using public cloud.

A report by North Bridge and research firm Wikibon found the following usages of cloud computing by businesses:

  • 81 percent – sales and marketing
  • 79 percent – business analytics
  • 79 percent – customer service
  • 73 percent – HR and Payroll

One interesting highlight is that just four years ago the Wikibon survey listed HR and Payroll as the third least likely sector to be disrupted by cloud computing and today nearly three-quarters of HR groups have some cloud usage.  This is just another indicator of just how fast cloud computing is catching on.

Jim Moran, General Partner at North Bridge, said that “we’re seeing the pervasiveness of cloud disrupt industries across the board as companies look to maximize and implement cloud as a strategic and integral technology. We’re also seeing the emergence of the cloud as the only way businesses can truly get more out of their data including analyzing and executing on it real-time. … [but] because data rarely moves between clouds (Public/Private) companies must first learn how to interconnect disparate data sources into new applications.”

Brian Gracely, Senior Cloud Analyst, Wikibon, said that “deploying to public cloud and hybrid cloud are no longer ‘if’ questions, but ‘when’… over the next 10 years, hybrid cloud will be the predominant model which will include one-third of IT spending on public cloud. The Future of Cloud data shows that businesses see cloud as a way for IT to deliver business agility for competitive advantage.”

 

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